How Carlyle Hurts the Environment
In April of 2007 Washington D.C.-based Carlyle Group completed its buyout of Synagro Technologies, Inc. for $772 million.1 Part of a fund dedicated to purchasing critical infrastructure, Carlyle calls investments like these, "A true win-win proposition."2 But when it comes to Synagro and its products, communities stand to lose. The impact of Carlyle's takeover of Synagro:Headquartered in Houston, Texas, Synagro specializes in processing municipal waste products, transporting the resulting "sewer sludge" and distributing it for land application.3 Concerns about sludge have been raised in a number of American communities. | RESIDENTS CONCERNED WORKERS: WHAT DO YOU KNOW ABOUT SYNAGRO?FIVE REASONS TO ASK QUESTIONS BEFORE CONTRACTING WITH SYNAGRO TECHNOLOGIES |
Several individuals filed suit against a Synagro subsidiary in 2006 alleging that soon after applications of Synagro products on a neighboring property, they started suffering from running noses, burning eyes, even pneumonia and lung scarring.4 The Cornell Waste Management Institute has compiled a database tracking these reports of asthma, allergies, birth complications, flu-like symptoms, gastrointestinal complications, headaches, immunodeficiency problems, lesions, nausea, skin rashes, tumors, vomiting and other symptoms.5
Communities should be alarmed by the fact that the takeover by the Carlyle Group means less information about Synagro's operations: the company is no longer accountable to public shareholders, and it won't have to file annual reports with the S.E.C. The cloak of secrecy that Carlyle employs could make it more difficult for neighbors to know about potential dangers from living or working near Synagro facilities.
Demand Accountability
Affected municipalities are exploring their options to address concerns about Synagro products; among the strategies they are considering are lawsuits, injunctions, studies of government leases with the company, and city ordinances.6 Communities have a right to know about the products being produced and distributed in their neighborhoods, especially when those products may contribute to health hazards. The Carlyle Group needs to commit to full transparency and accountability concerning the negligent business practices at Synagro.
Find out if Synagro is active in your community.
1See Synagro press release, dated January 29, 2007 (http://www.secinfo.com/d13ACs.uMe.b.htm) and also http://www.altassets.com/news/arc/2007/nz11990.php
2http://www.carlyle.com/News/News%20Archive/2007/item9863.html
3Hoovers profile of Synagro, http://www.hoovers.com/synagro/--ID__45987--/free-co-factsheet.xhtml
4Hirschauer, Sabine, "SLUDGE," Daily Press(Newport News), April 23, 2006; Loudan Neighbors against Toxic Sludge, http://www.loudounnats.org/pdf/Sludge_Complaint_Revised_11-13-06_Secure.pdf ; "Sewage sludge sent back to state court," Real Estate/Environmental Liability News, May 18, 2007.
5"Sewage Biosolids Land Application: Reported Heath Incidents," Cornell Waste Management Institute, updated 2/23/07, http://cwmi.css.cornell.edu/Sludge/incidents.htm
6"Residents raise stink," "Company ordered to Clean Up," "Sludge Fighters look to Expand," "Tilden biosolids law progresses: Synagro Technologies Inc., which would supply the treated sewage sludge, says an ordinance that would impose several fees basically is a ban," Reading Eagle, July 23, 2007.